TAPPI Over The Wire Paper 360
Past Issues | Printer Friendly | TAPPI.org | Advertise | Buyers Guide | Travels with Larry Archive FacebookTwitterLinkedIn
       

Shengda Packaging Group Goes Private

Print Print this Article | Send to Colleague

 
China Shengda Packaging Group Inc. CPGI ("Shengda" or the "Company"), a leading Chinese paper packaging company based in Hangzhou, announced on Tuesday (September 15) that Envision Capital Partners, L.P., CSV China Opportunities Fund, L.P., Ray Shi China Small Mid Cap Select Fund, LB Holdings II, LLC and Newberg Road Partners, L.P., representing certain other shareholders (collectively, the "Contributing Stockholders"), pursuant to a contribution and subscription agreement, dated as of May 21, 2015, by and among the Contributing Stockholders, Yida International Holdings Limited, a British Virgin Islands company ("Parent"), Yida International Acquisition Limited, a newly formed Carson City, Nev., USA, company and wholly owned subsidiary of Parent ("Merger Sub"), and Eastlake Capital Limited, a British Virgin Islands company, the Contributing Stockholders contributed all of their shares of common stock of Shengda, par value $0.001 per share (the "Shares") to Parent, which represent approximately 90.8% of the total issued and outstanding shares of Shengda, and Parent contributed the Shares to Merger Sub.

As a result of these transactions, Merger Sub acquired approximately 90.8% of the total issued and outstanding shares of common stock of Shengda. On Tuesday, Shengda and Merger Sub filed the Articles of Merger with Shengda and Merger Sub (the "Merger") became effective on September 15. As a result of the Merger, Shengda became a wholly owned subsidiary of Parent. The company also announced that at its request, on September 15, the NASDAQ Stock Market LLC filed a delisting application on Form 25 with the Securities and Exchange Commission (SEC) to delist and deregister the Company's common stock. Shengda expects to file a Form 15 with the SEC to terminate its reporting obligations as a public company under the U.S. securities laws on or about September 25, 2015. The company's obligations to file with the SEC certain reports and forms, including Form 10-K, Form 10-Q and Form 8-K, will be suspended immediately as of the filing date of the Form 15. Existing stockholders of the Company's common stock will be notified by mail of the cancellation of their shares and their right to receive $7.25 in cash per share upon the submission of their stock certificates in accordance with proper procedures.  

Shengda is principally engaged in design, manufacturing, and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugating medium paper and corrugated paperboards, which are used for the production of flexo-printed and color-printed cartons. The company provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliance, consumer electronics, pharmaceuticals, chemicals, machinery, and other consumer and industrial sectors in China.
 

Back to TAPPI: Over The Wire

Share Share on Facebook Share on Twitter Share on LinkedIn